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TMI Blog2021 (12) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... aw material not reached the place of the assessee, it cannot be said that the assessee has not commenced the business. Once the assessee is setup entire business activity and waiting for the raw material, it has not reached because of various reasons therefore, it cannot be said that the assessee is not commenced his business. Hon ble Delhi High court in the case of CIT v. LG Electronic (India) Ltd. [ 2005 (5) TMI 30 - DELHI HIGH COURT] has observed that there is a distinction between the commencement and setting up of the business beyond two dates need not necessarily overlap and section 3 refers to date of setting up of the business and as such it is only thereafter, that previous years of newly set up business would commence and, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the assessee has submitted that Financial Year 2012-13, the assessee company has paid advance for the purchase of raw material. The A.O has considered the same and observed that there was no business performed, the claim of loss claimed by the assessee is disallowed. On appeal before the Ld. CIT(A), it was submitted that the assessee has already set up the business and the assessee also paid an amount of ₹ 95,000/- for purchase of the raw material therefore, the business of the assessee has commenced and the loss claimed by the assessee is to be allowed. The Ld. CIT(A) after considering the explanation of the assessee, he has observed that the raw material not reached the premises of the assessee therefore, it cannot be said th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below. 8. The assessee is engaged in the business of engineering industry and claimed the business loss of ₹ 26,59,169/- for the year under consideration. The case of the assessee is that the assessee-company is ready for the commencement of the business and placed the order for raw material and advance also paid therefore, the loss claimed by the assessee has to be allowed. The case of the A.O is that the assessee-company has not performed any business activities therefore, the same cannot be allowed. On appeal, the Ld. CIT(A) has confirmed the order of the A.O by observing that the assessee has paid the advance for the raw material and the raw material not reached to the assessee-company therefore, it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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